‘Ayalkootam’ loan fraud: Inquiry report submitted to state commission

Kozhikode: The inquiry report of the district mission regarding the fraud committed by the ‘Ayalkootam’ (neighbourhood groups) through Kudumbashree was submitted to the state commission. In addition to the ‘Ayalkootam’ members, the lapses in judgment of certain officials have also been highlighted. 

The ‘Nanma’ and ‘Poonchola’ Ayalkootam groups borrowed a loan from Minority Development Corporation by providing false information and calling themselves minority groups. A total of Rs 25.6 lakhs were borrowed. When the fraud came to light, the loan was repaid. Since the Minority Development Corporation did not press charges, no case was registered.

UDF council party alleged that 2 percent of the revenue earmarked for Kudumbashree poverty alleviation activities are being diverted and spent elsewhere. 

The role of an officer in connection with the sanction of loans of the Minority Development Corporation through impersonation has been criticised. Councillor K.C Shobhita and K Moitheenkoya demanded that an investigation should be conducted on such irregularities.